RCMP have arrested two Surrey men in connection with an alleged lottery scam that targeted residents -- mostly seniors -- in the U.S.

Search warrants were executed Thursday at four homes and two businesses in Surrey, Burnaby and Coquitlam, RCMP Staff Sgt. Tim Olstead told ctvbc.ca. The businesses were a car dealership and a beauty supply company.

The alleged victims were bilked of millions of dollars, Olstead said.

Both men face extradition to the U.S., where they have been charged in a criminal complaint filed in U.S. District Court in Los Angeles. The FBI assisted RCMP in the yearlong investigation.

"None of the victims interviewed to date has received any of the promised winnings," according to a copy of the criminal complaint obtained by ctvbc.ca

The men have been charged with mail fraud.

Police allege U.S. residents received letters telling them that they had won a lottery. The letters were accompanied by cheques that appeared to be worth several thousand dollars.

Residents were told to dial a number to claim their prize. But when they called the number, they were told they needed to pay a certain amount of money -- typically about $4,000, Olstead said -- in order for their lottery winnings to be released. The money was needed to cover taxes and fees, they were told.

One alleged victim in California, according to the complaint, received a fake cheque for $4,880 and was told that an additional $350,150 was waiting. But "the rest of your prize shall be  sent to you after you have paid 1% of your total winning as the non residential tax" the letter stated.

The funds were wired through MoneyGram outlets operated by the men, according to authorities.

Some of the alleged victims were re-contacted and convinced to send additional payments, according to the complaint.